Basic Issues of Finance, State Finance and Public Finance.

purely personal goods (HHCN). However, the State, through public educational institutions, must perform the following tasks:

- Improve people's knowledge, improve workers' qualifications, promote human resources for socio-economic development, promote industrialization and modernization of the economy. Therefore, the State needs to have policies to support and encourage people to enjoy education and training services. Public education and training institutions are important tools to implement the education and training development strategy according to the State's goals. Especially for remote areas, areas with difficult economic conditions; education for ethnic minorities...

- Carry out tasks to improve social welfare for all people, give preferential treatment to social policy subjects (the poor, people with revolutionary contributions, ethnic minority students, war invalids, children of war invalids, martyrs, etc.).

Medical field:

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- Preventive health units carry out the following tasks: providing information, education, and communication to improve people's understanding of diseases and self-prevention measures; conducting research to find measures to limit and prevent diseases... thereby improving the health of the entire population, directly contributing significantly to the stability and development of the socio-economy. Disease prevention products and services have all the basic attributes of pure public goods.

- Medical facilities and hospitals perform medical examination and treatment for patients. Treatment expenses are personal expenses, directly serving the individuals being treated. Medical examination and treatment activities, in essence, are purely public services . Medical facilities provide treatment services at the request of the people and the beneficiaries of the services must pay for the examination and treatment (or the health insurance will pay on their behalf).

However, medical examination and treatment activities are directly related to people's health, just like educational activities, medical examination and treatment facilities must implement human development strategies and ensure people's right to health care , improve people's health, and provide health care.

health care for social welfare subjects (the poor, people with revolutionary contributions, ethnic minorities, the elderly, the disabled...) to ensure their access to all necessary health services; through the state budget, redistribute income to improve social welfare for the people.

Especially for remote areas, areas with difficult economic conditions... because there are very few medical facilities, limited medical examination and treatment equipment; limited medical staff qualifications... so public medical facilities must ensure.

- Hospitals perform the task of examining and treating specific diseases such as: tuberculosis - with high risk of infection, having direct impact on the whole community; mental illness - examining and treating people without behavioral capacity... although also having the attributes of a public service, they cannot be carried out through the market like other medical examination and treatment activities.

Cultural and information fields:

- SN conservation units, museums, libraries, theaters, cultural and traditional art troupes (puppetry, cheo, tuong, cai luong...) carry out the task of preserving art forms and cultures of ethnic minorities, preserving and continuing to develop the cultural heritage of ethnic groups, contributing to the goal of developing common cultural values of the whole community . These activities cannot be accounted for in terms of costs.

- SN units such as radio, television, news agencies, newspapers... carry out the task of providing information to the community, contributing to educating personality, ethics, healthy lifestyle, enriching the cultural and spiritual life of the people... Traditional media products have all the attributes of pure public goods ; however, with current technological conditions and in the market mechanism, many media products with pure public goods have appeared such as: cable TV, digital, internet... customers have to pay service fees according to market prices when provided with services; or service providers benefit from providing services (due to revenue from activities).

(Advertising, sponsorship, etc.) consumers do not have to pay for watching TV, listening to the radio, or only pay a small amount when buying a newspaper, etc., and the State budget does not have to provide operating funds for these units.

- Cultural service units provide products and services such as: music and dance theaters, cinemas, publishing houses, production and business units of audio-visual products (books, newspapers, films, music tapes, etc.) - are purely industrial goods, service providers can fully account for costs and consumers must pay to use the products, watch movies, watch music, etc.

Science and technology fields:

- Basic scientific research activities: these are activities that aim to create a basic foundation for improving the scientific and technical level of society, improving production technology, and are the driving force for socio-economic development in the age of science and technology; however, this is a field that requires huge investment resources (people, equipment, funding, etc.), making it difficult to calculate costs and recover capital, so the State needs to invest.

- Applied scientific research and technology transfer activities: these are activities that directly impact the production development process, the activities of agencies, units and enterprises; contributing to improving the efficiency of the activities of organizations and individuals. These are purely industrial activities, however, there are activities that require large investments, over a long period of time, need support from the State budget, or the State has preferential credit policies.

- Activities providing scientific and technical services such as: these are purely industrial service products.

In reality, the activities of most scientific and technological units provide all three groups of activities mentioned above; there are a few units that mainly carry out basic scientific research tasks (such as the Institute of Mathematics, the Institute of Physics, the Institute of Chemistry, social research institutes, strategic research institutes...).

Economic career field:

- Activities to carry out tasks for the benefit of the community, such as: hydrometeorological and oceanographic forecasting to help the whole society prevent, combat and limit damages and risks caused by natural disasters; activities to protect the environment and protect national natural resources. The result of this group's activities is to provide purely public goods to society.

- Carry out tasks assigned by the State, protect resources and national sovereignty; this group carries out SN activities such as: research, investigation, survey, measurement and drawing of boundary maps, administrative maps, resource maps, mineral geology...

- Carrying out the task of providing public services to society, such as: ensuring traffic, maintaining and repairing the dike system, irrigation dams, irrigation systems serving agricultural production... these are economic units authorized by the State to manage, invest, and exploit public technical infrastructure works to serve the needs of socio-economic development.

1.2. Finance of the public sector in a market economy.

1.2.1. Basic issues of finance, state finance and public finance.

Finance .

According to the Marxist-Leninist Political Economy Textbook of the Ministry of Education and Training: " Our country's finance is a system of economic relations expressed in the field of formation, distribution and use of monetary funds in the national economy to build, protect and develop socialism " [1, p. 416].

According to the Political Economy Textbook of the National Economics University: “ Finance is an objective economic category associated with commodity economy and market economy. It is a system of certain economic relations expressed in the form of money, arising in the process of formation,

manage and use monetary funds to develop production and improve people's material and spiritual life " [55, p. 412].

Thus, finance can be generalized as an economic category, reflecting the relationships between economic entities in the formation, management and use of monetary funds to develop production and satisfy the common needs of society, as well as the needs of organizations and individuals .

With such a concept, finance always has two basic functions: distribution and management:

The distribution function is an inherent function of finance. It is the process of distributing financial resources into different parts, forming monetary funds owned by different entities, used for the purposes of specific socio-economic entities and thereby creating different monetary funds in the national financial system. Performing the distribution function, finance participates in both processes:

- Initial distribution: takes place in the field of material production (between those who create social products and national income), with the purpose of forming monetary funds for organizations and individuals who have participated in the material production process.

- Redistribution is the continuation of the initial distribution process, which takes place both inside and outside the production sector. The redistribution process aims at three purposes: adding additional revenue to the state budget, generating income for non-material production sectors , and regulating income among social classes, reducing the gap between rich and poor in society.

The financial director function is performed right in the process of forming and using the total social product and national income, the process of social reproduction. Finance uses money to supervise the management and use of monetary funds, in order to encourage organizations and individuals to use monetary funds effectively.

The above two functions of finance are closely related and inseparable in the process of creating and using monetary funds.

State Finance .

In the previous centrally planned economy of Vietnam, the State was the sole entity regulating and controlling the entire economy. State finance is the totality of relations in the process of forming and using State monetary funds to perform the economic functions undertaken by the State - this is a single financial system. Therefore, the concept of State finance is identical to that of public finance, with no difference in economic nature and content.

The content of the concept of State finance includes: State budget, State reserves, State credit, State bank, finance of administrative agencies, finance of public service units and finance of State enterprises. In the process of implementing the transformation of the State enterprise financial management mechanism to diversify ownership forms, only the value of capital and assets owned by the State remains under State finance .

When talking about finance in general, people often mention two functions: distribution and management; under market mechanism conditions, the functions of State finance are specified into the following functions:

- Function of mobilizing and allocating resources: through tax tools, forming the State budget in monetary form and allocating those resources to areas of social life (such as: operations of the State apparatus, investment in economic development, infrastructure construction, creation of national reserve funds, spending on human resource development, for the common interests of the whole community...).

- Distribution function, implementing social justice: the distribution function of finance is performed in both the initial distribution and redistribution of social products; Through tax tools, the State can directly regulate income among individuals, social classes, organizations,

businesses... thereby maintaining social fairness to a certain extent, limiting the gap between rich and poor.

- Function of creating and maintaining macroeconomic stability: The State must use State financial tools to make macro-economic adjustments to create large balanced relationships, create stable development, and limit imbalances caused by the market mechanism.

- The monetary management function of State finance: the functions of allocating resources, redistributing, creating and maintaining macroeconomic stability will not be self-performed without administrative orders from State management; or will be less effective without State supervision.

- Growth stimulation function: in fact, the above functions have partly contained the role of State finance in promoting growth. However, from another characteristic perspective, State finance also plays the role of a direct investment tool that creates growth for the economy. It is State investment that has created a very strong driving force for economic development. The flexible and reasonable use of tax tools can strongly stimulate development for the sectors that the State intends.

Public finance .

Along with the process of economic development according to the market mechanism, the role, position and function of finance have fundamentally changed; the concept of public finance has been shaped and clearly distinguished from State finance.

In terms of terminology, public finance includes two components: the concept of "finance" and the concept of "public"; from here, many different opinions have been formed about the concept of public finance.

There is an opinion that "public" is common, must be understood as belonging to the whole country, so it is necessary to define " Public finance is the totality of monetary relations".

related to the creation and spending of the national general monetary fund"; including the relationship of payment to the public fund and the relationship of spending public funds [38, p. 35].

There is an opinion that public finance is finance serving national purposes, owned by the State and is identical to the concept of State finance .

Although there are many different concepts and definitions of public finance, in general, the views on public finance are unified as follows:

- Public finance is owned by the State , the State is the sole entity that decides the formation and use of its monetary fund. Public finance is an important economic tool of the State to carry out the tasks of socio-economic development of the country.

- Public finance is always associated with the political power of the State, demonstrating coercion through the system of laws prescribed by the State.

- Public finance serves the interests of the whole community , is not dominated by individual interests and does not provide direct compensation .

- Public finance is not intended for profit-making purposes .

From the above characteristics and features of public finance, it is possible to propose the concept of public finance as a category reflecting the system of economic relations between the State and economic entities in the process of forming and using State monetary funds to perform the inherent functions of the State towards society, serving the common interests of the whole society and the nation, not directly compensating, not aiming at profit .

Thus, public finance is an important component of state finance, but differs from state finance in the following points:

- Public finance is not associated with profit-making business activities, while State finance includes profit-making business activities.

- Public finance is associated with the task of spending to serve the implementation of the inherent functions of the State. State finance has a wide scope.

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